Walmart Inc (WMT)
Quick ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,037,000 | 9,867,000 | 8,885,000 | 14,760,000 | 17,741,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 96,584,000 | 92,415,000 | 92,458,000 | 87,379,000 | 92,645,000 |
| Quick ratio | 0.09 | 0.11 | 0.10 | 0.17 | 0.19 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,037,000K
+ $—K
+ $—K)
÷ $96,584,000K
= 0.09
The quick ratio of Walmart Inc, calculated as a measure of short-term liquidity, has shown a declining trend over the past five years. As of January 31, 2021, the quick ratio stood at 0.19, indicating that for every $1 of current liabilities, the company had $0.19 of highly liquid assets to cover its immediate obligations. By January 31, 2025, the quick ratio had decreased to 0.09, suggesting a decrease in the company's ability to meet its short-term liabilities with liquid assets.
This downward trajectory may raise concerns about the company's liquidity position, as a quick ratio below 1 typically indicates a potential risk of financial strain. It is crucial for Walmart Inc to closely monitor this ratio and take necessary actions to ensure that it maintains a healthy level of liquidity to meet its short-term obligations effectively.
Peer comparison
Jan 31, 2025